Arla's Strong 2024 Start Boosts Future Sustainability Initiatives

Arla's strong performance in early 2024 is accelerating its commitment to sustainability. The company's robust start this year is expected to enhance its future sustainability efforts, driving initiatives aimed at improving environmental impact and advancing sustainable practices across its operations. This positive momentum positions Arla to strengthen its focus on eco-friendly and responsible business practices.

Arla Foods has posted a strong performance in the first half of 2024, building on the momentum from late 2023. This success has led to a 5 EUR-cent/kg increase in milk prices compared to the latter half of 2023 and a 1 EUR-cent/kg supplementary payment to farmer owners. Additionally, Arla is advancing sustainability initiatives through its FarmAhead Technology.

CEO Peder Tuborgh expressed satisfaction with the ongoing positive momentum, which has enabled Arla to announce solid results and a competitive milk price that supports future sustainability efforts.

The increase in milk prices and supplementary payments is largely due to rising commodity prices, Arla’s Fund Our Future transformation and efficiency program, and a return to branded volume growth. Strategic brands saw a 4.1% revenue increase in the first half of 2024, reversing a 6.0% decline in the same period the previous year. Notable growth came from Lurpak, Puck, and Arla brands, which grew by 7.9%, 4.4%, and 3.8% respectively.

For the first six months of 2024, Arla’s performance price was 47.5 EUR-cent/kg, and total revenue reached EUR 6.6 billion, with a net profit of EUR 167 million. CFO Torben Dahl Nyholm highlighted the competitive milk price and stronger-than-expected branded growth, attributing this success to the strength of Arla’s brands and its strategic efforts.

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Source fnbnews‍